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Transcorp Hotels Posts 172% Profit Growth, N31.4bn Revenue.

Transcorp Hotels increases profit by 172%

Transcorp Hotels Plc has reported its financial results for the full year 2022.

The Group reported a profit before tax (PBT) of N4.5 billion, which was a 172 per cent increase year-on-year, having ended 2021 with a PBT of N1.7 billion.

Transcorp Hotels Plc also reported a 47 per cent growth in revenue to N31.4 billion in 2022, from N21.4 billion the previous year. The Group also reported a N2.6 billion profit after tax. 

 Managing Director/CEO of Transcorp Hotels Plc, Dupe Olusola, in her comments noted that Transcorp Hotels delivered another year of exceptional revenue growth amidst the uncertainty in the macro-economic conditions.  

 “This impressive achievement is the highest revenue generated since the inception of the hotel and has set the Group above pre-COVID performance levels.

“The full-fledged return of the International Business Travel segment and the bolstering leisure segment contributed immensely to this performance. 

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“We continuously strive to achieve a dynamic mix of business types closely managing our hotel occupancy and guest experience,” Olusola added.  

Speaking further, she said: “Our excellent financial performance in 2022, despite adverse economic conditions, is the direct result of our concerted efforts and commitment to deliver excellent value to our stakeholders and customers.

“In 2023 and beyond, we will build on our successes and strengths and continuously review our business strategies to optimize our existing businesses, identifying new opportunities and accelerating execution.”

Olusola noted that the company’s Board has approved that the sum of N1.33 billion be paid to shareholders as dividends for the year ended December 31, 2022, which was subject to the shareholders’ declaration at its Annual General Meeting. 

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 The Chief Finance Officer of the company, Oluwatobiloba Ojediran, in her comments noted the company has continued to maintain its disciplined approach to financial management during the year under review.  

 “With the hike in costs of supplies caused by negative macro-climate, our continued efforts to drive cost efficiencies resulted in an improved net profit margin which doubled from seven per cent in 2021 to14 per cent in 2022.  

“Our focus on strategic financial management remained beneficial, as we exercised firm discipline in capital allocation. We recorded about two per cent increase in finance costs over the previous year despite the cessation of the previously enjoyed COVID-19 concessions on interest rate granted by lenders,” the CFO stated, adding that with strict adherence to the set strategies and financial discipline, the company will continue experience positive improvement in its performance in 2023. 

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Also highlighting some non-financial figures, Ojediran noted that Transcorp Hotels now has a combined 5000+ rooms, both in ownership and management through its online booking platform Aura by Transcorp Hotels.

With Aura by Transcorp Hotels, users can book top quality hotels, unique homes and experiences from all parts of Nigeria. Aura by Transcorp Hotels is available on Google Play and Apple App store, and also on web via aura.transcorphotels.com

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